The Most Important Tips for Managing Financial Stress

When it comes to sources of stress, one of the most common issues that people face has to do with their finances. No matter what situation someone finds themselves in or where their socioeconomic status might be, everyone thinks about money. As a result, this can be a common source of stress. Money plays a role in putting a roof over someone’s head, putting food on the table, sending kids to school, paying for vacations, and more. Therefore, it is easy to see how money can lead to financial stress. For those who are dealing with financial stress, here are a few important tips to take note of to help deal with it. 

  • One Step at a Time

First, it is critical to remember to take one step at a time. Those who are under a lot of financial stress are often tempted to try to fix everything with one fell swoop. This simply is not possible. Some people might have to make decisions in rapid succession out of necessity. In this case, people simply need to slow down, take a deep breath, evaluate all options and then figure out which one leads to the best result. Try to space out those financial decisions to focus on one issue at a time. Those who make too many decisions in a short amount of time are going to feel overwhelmed. This can lead to financial stress. Instead, focus on one issue at a time. Then, once that decision is made, move on to the next one.

  • Always Plan Ahead

Another major way people can deal with their financial stress is to make a plan. Take a step back. Look at the financial situation. Figure out what the biggest drains on the family’s finances might be. Then, take a look at the expenses. Figure out what can be cut. This is the foundation of any financial plan and can reduce a lot of financial stress that people feel. Of course, no plan is going to work unless people stick to it. Therefore, take stock of the plan every once in a while and see if the family has stuck to it. While the process of planning can lead to anxiety in the short-term, this can also reduce financial stress over the long-term. It is helpful to have a plan, as this will give people a sense of comfort.

  • Ask for Help

Those who are dealing with financial stress should not be afraid to ask for help. There are regular, recurring expenses that could be reduced simply by asking for help. For example, those who have a lot of credit card debt should reach out to the credit card company and ask for a reprieve. This could be a one-time courtesy credit or a temporary reduction on the card’s interest rate, allowing someone to carry a balance. Those who are having trouble with their mortgage payments should reach out to the bank to see if there is a way to alter the payment plan. These simple phone calls can go a long way.

  • Avoid Temptation 

Finally, the most important tip that people need to follow when it comes to dealing with financial stress is to avoid temptation. There are always companies that are asking for money. These come in the form of internet ads, window browsing, and TV commercials. Those who are in a tough financial situation do not need to make this worse by making an impulse purchase. Therefore, try to do everything possible to avoid the temptation of another big purchase. This will only make the financial stress worse.

In Conclusion

It is not unusual for people to face financial stress, so they need to remember that they are not alone. With a bit of planning and some discipline, it is possible for people to manage their financial stress in an effective way.

Annika Bansal

Annika "The Chick Geek" is the founder of Small Business Sense shares small business ideas, tips and resources for independent Entrepreneurs and Small Business owners.